Pending home sales down nationwide in December, down in 2013 for the Napa Valley

Maybe things are becoming seasonal as they used to be or maybe it is the low inventory of homes for sale causing this? Due to the holidays, December traditionally was slow for home sales but here in the Napa Valley there were 132 sales for November 120 for December of 2012 and 91 for January 2013. The only pending sales showing are for December 76 and January 37. So we to seem to be slowing here and if you ask me, it is the lack of inventory. Something plaguing us and almost everywhere in the nation.

Pending home sales down nationwide in December

Pending home sales declined nationwide in December, but have stayed above year-ago levels for 20 consecutive months, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales declined 4.3 percent to 101.7 in December from 106.3 in November but is 6.9 percent higher than December 2011 when it was 95.1. The data reflect contracts but not closings.

Lawrence Yun, NAR chief economist, said shortages of available inventory are limiting sales in some areas. “Supplies of homes costing less than $100,000 are tight in much of the country, especially in the West, so first-time buyers have fewer options,” he said. “We expect a seasonal rise of inventory in the spring to help, but a seller’s market may be developing. Much of the West is already a seller’s market for homes priced under a million dollars, but conditions are much more balanced in the Northeast.”

Even with tighter inventory, a pent-up demand and favorable affordability conditions bode well for the market. Yun expects existing-home sales to increase another 9 percent in 2013, following a 9 percent rise in 2012.

In the West, which includes California, the PHSI fell 8.2 percent in December to 101.0 and is 5.3 percent below a year ago.

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